Paid media ad spend climbing 5% in 2016; mobile catches TV in 2020

By Jim O'Neill on Mar 25 2016 at 8:45 AM
Paid media ad spend climbing 5% in 2016; mobile catches TV in 2020

Despite campaign spending during this election year and brand spending during Rio’s Summer Olympic Games, U.S. spending on paid media is expected to climb just 5%, with most of the gain coming through digital channels.

TV spending is expected to grow less than 3%, according to a new report from eMarketer, to $70.6 billion in 2016 from $68.88 a year ago. Competition from paid streaming services and other video-on-demand platforms likely will continue to take viewership from traditional TV outlets, cutting into revenue and, in fact, pushing them to digital.

Digital is forecast to grow to $68.82 billion, up more than 15% from a year ago.

That growth pales in comparison to mobile, forecast to climb 38% this year as brands look to connect with Millennials and younger consumers who have adopted mobile as their screen of the moment. eMarketer says advertisers will spend $43.6 billion on mobile campaigns, up from $31.59 billion a year go.

Print and radio, meanwhile, both are expected to see negative growth for the year, with print declining more than 7% to $26.06 billion from $28.16 billion. Newspapers are expected to drop 6% to $13.77 billion and magazines will be down about 1% to $12.97 billion.

Ad spend on radio also is expected to be lower, off more than 1%, to $14.12 billion from $14.27 billion.

2020 VISION

The report continues to project 2017 as the year that spending on digital media eclipses the traditional TV market. Digital is forecast to see a more than 12% hike in ad spend to $77.37 billion, compared to TV’s 3% bump to $72.01 billion in 2017.

Longer term, the picture is even more compelling for digital.

Although TV spend is forecast to increase some 12% between 2015 and 2020, reaching $77.17 billion, digital growth is primed to rocket to more than $105.21 billion, a 76% increase over the same period.

MOBILE REMAINS THE STAR

Ad spending for mobile campaigns is expected to see growth topping 144%. Spending on mobile alone -- $77.1 billion – is expected to nearly equal the spend on traditional TV.

Spending on newspapers and magazines will continue its slow decline, with print media overall down more than 8% by 2020 to $25.89 billion.

That decline will mean publishers – more than ever before – will need to go online with their content; and, where they can, turn to online video as a new, and potentially, primary revenue stream.

CPM for online video typically are significantly higher than traditional online banner ads, meaning that revenue from ads surrounding original video content has the potential to be rich.

A Reuters Institute report said it found that 79% of editors, CEOs and digital leaders it surveyed said they would be investing more in online news video in 2016, and more than half called deepening online engagement was a “top priority” for them this year.

Here’s eMarketer’s report.

Stay tuned.

Follow me on Twitter @JimONeillMedia and on LinkedIn

READ THESE NEXT

LatAM, SVOD, Mobile
Latin America seeing golden age of TV in form of SVOD
Aug 22 2017 7:30 AM

Globally, subscription video on-demand (SVOD) is on a rocket trajectory and Latin America is deeply in the mix. While Netflix, Amazon and Hulu have been the leaders of subscription video on-demand growth, an increasing array of subscription services – there are more than 100 in the U.S. and Canada alone – are seeing fast subscriber growth and adoption across demographic groups.

SVOD, Mobile
Binging is big, small screens’ share rising, original content scores
Mar 23 2017 6:45 AM

Binging is big in the United States; it has been since Netflix first made it possible to watch a season of House of Cards over a long weekend, and that has made it critical for competing – or complimentary – services to assure that their own content is easily discoverable and easily accessible.

AT&T pushing 5G mobile tech to support rapid DirecTV Now expansion
Mobile, Cloud TV, Virtual MVPD
AT&T pushing 5G mobile tech to support rapid DirecTV Now expansion
Jan 05 2017 5:30 AM

Think AT&T is looking at its DirecTV Now as a complementary service to its satellite-delivered DirecTV service or wired service U-verse TV? Think again.

AT&T at CES this week previewed its 5G wireless technology, and said it would begin testing the tech this year with its DirecTV Now service as a major piece of the delivery matrix.

Report: Mobile video mainstreaming with Millennials
Research, Mobile, Millennials
Report: Mobile video mainstreaming with Millennials
Dec 15 2016 11:00 AM

More than 20% of U.S. Millennials watch at least three hours of video each week on the smartphones, with nearly 12% saying they watch more than five hours. And, according to a new report, 53% say they watch at least an hour a week.